Provision of a sovereign loan of up to EUR 5 million to the Government of Kosovo to be on-lent or on-granted to the municipality of Prizren (the "Municipality" or "Prizren") to co-finance energy efficiency ("EE"), structural and comfort measures in municipally owned buildings, including kindergartens, schools and primary healthcare centres (the "Project").
The Project will be co-financed with an investment grant from the Regional Energy Efficiency Programme for the Western Balkans ("REEP") funded by the European Union.
- Improvement of the environmental sustainability of municipally-owned buildings in Prizren by implementing EE measures that will lead to energy savings and reduction in CO2 emissions.
- Improvement of the energy performance of the renovated buildings by at least two Energy Performance Certificate ("EPC") classes.
- Improvement of comfort levels and quality in the renovated buildings, which is very important for buildings of this nature (children and healthcare).
ETI score: 60
The primary goal of the project is to achieve significant environmental improvements and promote the green economy transition ("GET") within the Municipality. The project will introduce high quality, innovative EE technologies in buildings that will have a strong demonstration effect and support the "renovation wave" in buildings across the country and the region.
The Beneficiary of this Project is the municipality of Prizren. Prizren is the second largest municipality in Kosovo and the regional centre of southwest Kosovo with a population of approximately 180.000.
EBRD Finance Summary
A sovereign loan to the Governmetn of Kosovo to be on-lent or on-granted to the municipality of Prizren.
Total Project Cost
The total estimated project cost is approximately EUR 7.5 million including Technical Assistance.
- Financing Structure - Commercial long-term financing for public infrastructure investments is not yet available in Kosovo. Morover, Kosovo Kosovo has no access to international capital markets.
- Risk Mitigation - The proposed investment will result in energy savings and lower GHC emission, thereby reducing carbon transition risks and take climate action.
- Standard Setting - Technical Assistance and loan conditionalities will support capacity building.
Environmental and Social Summary
Categorised B (2019 ESP). This project will have significant benefits related to high quality energy efficiency measures, including improvement to building insulation and replacement of old heating sources, resulting in improved energy efficiency and reduced emissions in public buildings in the municipality of Prizren. Environmental and social due diligence (ESDD) was comprised of an audit carried out by an independent consultant and included site visit to 11 selected buildings. The findings of the ESDD were that the Municipality has some limited elements of environmental and social management in place and is generally in compliance with national legislation. The ESAP has been prepared and agreed with the Municipality.
The Project consists of implementing energy efficiency (EE), structural and comfort measures in up to 100 municipally owned buildings, such as kindergartens, schools, and primary healthcare centres. The EE measures will generate around 59% annual energy savings and 48% annual avoided CO2 emissions (equivalent of 275 tonnes of CO2 emission per year). Technical and E&S DD findings showed that for some buildings, the water supplied does not meet drinking water standards, the sites are not connected to the sewage system and some schools are not equipped with proper toilets. Essential structural and comfort measures have therefore been added to the project scope; they include improvement of damaged structures, sewage/drainage systems, waterproofing, asbestos removal, sanitary rooms, etc. The Municipality does not have an E&S Policy, nor operate an Environmental, Health, Safety and Social (EHSS) Management System. The ESAP requires the beneficiary to assign responsibility for EHSS management at the Project Implementation Unit and to appoint a certified EHS Manager full time within the Municipality.
A Construction Phase Environmental, Health, Safety and Social Management Plan (CESMP) will be developed and implemented by the Contractor, and approved by the Municipality prior to start of construction. The ESAP requires the Municipality to ensure that in every Project building, i) building users have access to drinking water, ii) building users have access to toilets located within the building and equipped with flushing water, iii) domestic wastewater is collected and treated before discharge to natural environment.
All the contracts are in line with Law on Labour. The Municipality staff is covered by a Collective Labour General Agreement and a high percentage of employees are members of a Trade Union. There is currently no planned major programme of retrenchment across the Municipality. Most of the buildings are heated by central modern pellet boilers or firewood boilers of modern technology (or electricity); for the project-related buildings heated by non-certified individual firewood stoves, the ESAP requires replacement by a less air polluting heating system. Occupational H&S issues at the majority of the sites visited during ESDD need improved management; operational corrective actions have been captured in the ESAP. The ESAP also requires to conduct an intrusive asbestos survey and, where asbestos has been identified, to implement necessary measures to reduce the risks of exposure to asbestos fibres. Asbestos surveys will be conducted together with the Energy Audits in each Project building, and the implementation of an Asbestos Management Plan has been covenanted. The thermal insulation of walls and roofs will be suitably fire-rated by the Supplier, as prescribed in national standards. The ESAP requires that the design engineer submit a fire safety report to the Municipality, and that operational H&S issues are addressed after the end of the works (fire extinguishers, fire safety doors, etc.). All the buildings are owned and managed by the Municipality, however in some cases the land parcels are contested by private owners. The ESAP requires the Municipality to obtain the missing land titles. None of the Project building is on the list of buildings which are under protection of UNESCO or national law (as confirmed by a provision in the Loan Agreement). The Municipality maintains its own official webpage. An online grievance mechanism is already in place. A Stakeholder Engagement Plan (SEP) has been developed during the ESDD; the Municipality will notify in advance the building users about the planned reconstruction activities including alternative access to disrupted services (e.g. patients to be sent to other health care locations temporarily).
The Bank will monitor the project through annual environmental and social reports provided by the Municipality, and site visits if necessary.
Technical Cooperation and Grant Financing
- Feasibility Study of the Project
- Environmental and Social Due Diligence
- Project Implementation Support
Company Contact Information
PSD last updated
25 Apr 2022
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